GENERAL INSURANCE ASSOCIATION OF SINGAPORE

1 GENERAL INSURANCE ASSOCIATION OF SINGAPORE FIT & proper criteria APPENDIX A OF GIARR GENERAL INSURANCE ASSOCIATION of SINGAPORE 180 Cecil Street, #15-01 Bangkok Bank Building SINGAPORE 069546 Tel: 65 6221 8788 Fax: 65 6227 2051 APPENDIX A - FIT AND proper criteria Page 2 of 9 Contents 1. Eligi bility for Re gi stration .. 3 2. Thres hold Condition s .. 3 3. Competence Entry Re quirements .. 4 4. Continuing Profes sio nal Development (CPD) Requirement .. 4 5. Financial Soundnes s .. 4 6. Honesty, Integrity & Reputation .. 5 7. Entitlement of the Board .. 8 8. Compliance .. 8 9. Conflicts of Interest .. 9 10. Confidentiality .. 9 APPENDIX A - FIT AND proper criteria Page 3 of 9 1. Eli gib ili ty f or Re gis tration In order to qualify for registration and to continue to be registered as an Agent, Nominee Agent or Trade Specific Agent (TSA) with the Agents Registration Board ( the Board ) of the GENERAL INSURANCE ASSOCIATION of SINGAPORE ( GIA ) an applicant, Agent, Nominee Agent or TSA must satisfy the following conditions and requirements:- a) Threshold Conditions b) Competence Entry Requirements c) Continuing Professional Development Requirements d) Financial Soundness e) Honesty, Integrity and Reputation TSAs are exempted from fulfilling Clause (c).

2 2. Thresh old Condi ti o ns An Agent or Nominee Agent, including a Nominee of a TSA, who is a natural person must be:- a) at least 18 years of age; b) a SINGAPORE citizen or a SINGAPORE Permanent Resident or a foreigner holding a valid Work Permit or Employment Pass issued by the Ministry of Manpower; and c) in possession of minimum academic qualifications equivalent to or higher than 3 GCE O Level credit passes or the Basic Competency Examination Certificate awarded by the SINGAPORE College of INSURANCE . d) such persons already exempted by the board as of 1 October 1990 shall continue to be an Agent, Nominee Agent, or Agent of a TSA unless they fail to remain registered with the Board, by which time the threshold conditions set out in (a) to (c) shall apply.

3 An applicant, Agent or TSA which is a company registered with the Accounting and Corporate Regulatory Authority of SINGAPORE ( ACRA ) must have a minimum paid-up capital of S$25, at the time of application and must maintain the same level of paid-up capital during the currency of its registration with the Board. This Clause does not apply to employment agencies registered with Ministry of Manpower. APPENDIX A - FIT AND proper criteria Page 4 of 9 3. Compe tence Entry R equirements An Agent, or Nominee Agent (including a Nominee Agent of a TSA), who is a natural person must possess: a) Certificate in GENERAL INSURANCE (CGI) which comprises: i. Basic INSURANCE Concept & Principles (BCP) and Personal GENERAL INSURANCE (PGI) if he wishes to sell only personal INSURANCE products; or ii.

4 BCP and Commercial GENERAL INSURANCE (ComGI) if he wishes to sell only commercial INSURANCE products; or iii. BCP, PGI and ComGI if he wishes to sell both personal and commercial INSURANCE products. OR b) Acceptable qualifications in lieu of CGI as set out in Annex 1 to MAS Notice 211 on Minimum and Best Practice Training and Competency Standards for Direct GENERAL Insurers . 4. Continuing Pro fes si onal Develo pment ( CPD) Re quirement To remain registered with the Board, Agents, Nominee Agents and Nominee Agents of a TSA, who are natural persons are required to undergo and complete CPD training for a minimum number of hours each year as may be determined by the Board. The CPD training shall comprise such training and include such activities as may be determined by the Board from time to time.

5 5. Financial So undnes s An Agent, Nominee Agent, or Nominee Agent of a TSA who is a natural person must be financially sound. For the purpose of this section, a person who is not financially sound shall be one who: a) is or has been unable to fulfil any of its or his financial obligations, whether in SINGAPORE or elsewhere; b) has entered into a compromise or scheme of arrangement with its or his creditors or made an assignment for the benefit of its or his creditors, bring a compromise or scheme of arrangement or assignment that is still in operation, whether in SINGAPORE or elsewhere; c) is subject to a judgment debt which is unsatisfied, either in whole or in part, whether in SINGAPORE or elsewhere; APPENDIX A - FIT AND proper criteria Page 5 of 9 d) in addition to sub-paragraphs (a) to (c), in the case where the relevant person is an individual: i.

6 Is or has been the subject of a bankruptcy petition, whether in SINGAPORE or elsewhere and is pending; ii. has been adjudicated a bankrupt and the bankruptcy is undischarged, whether in SINGAPORE or elsewhere; or iii. is or has been subject to any other process outside SINGAPORE that is similar to those referred to in sub-paragraph (i) and (ii). An Agent or TSA which is a company registered with the Accounting and Corporate Regulatory Authority of SINGAPORE ( ACRA ) must be financially sound. For the purpose of this section, an Agent or TSA who is not financially sound shall be one who (in addition of paragraphs (a) to (c)): a) is or has been the subject of a winding up petition, whether in SINGAPORE or elsewhere and is pending; b) is in the course of being wound-up or otherwise dissolved, whether in SINGAPORE or elsewhere; c) is or has been a corporation where a receiver, receiver and manager, judicial manager, or such other person having the powers and duties of a receiver, receiver and manager, or judicial manager, has been appointed, in relation to, or in respect of any property of, the corporation, whether in SINGAPORE or elsewhere.

7 Or d) is or has been subject to any other process outside SINGAPORE that is similar to those referred to in sub-paragraphs (i) to (iii). An Agent, Nominee Agent or TSA must not have entered into a compromise or a scheme of arrangement with creditors, being a scheme of arrangement that is still in operation. 6. Hones ty, In te gri ty & Rep utation An Agent, Nominee Agent or TSA must not be convicted of:- a) an offence under the INSURANCE Act (Chapter 142) or any regulations made thereunder; b) an offence under The Penal Code (Chapter 224); APPENDIX A - FIT AND proper criteria Page 6 of 9 c) an offence specified under the Third Schedule of the Registration of Criminal Act (Chapter 268); d) an offence under the Corruption, Drug Trafficking and Other Serious Crime (Confiscation of Benefits) Act (Chapter 65A); e) an offence under any Act or regulations administered by the Monetary Authority of SINGAPORE ; f) a criminal offence involving fraud, misrepresentation or dishonesty.

8 G) an offence involving the financial enrichment of one party at the financial detriment of another party, or any other form of financial misconduct; or h) an offence under any statute which is a re-enactment Act, repealing Act or a consolidation Act in respect of any of the legislations referred to above. Subject to paragraph 7 hereof, an Agent, Nominee Agent or TSA must not:- a) be the subject of criminal proceedings which are pending in Court or have been, at any time (including prior to his registration as an Agent, Nominee Agent or TSA), convicted of a criminal offence, under any law in any jurisdiction; b) have been refused the right or restricted in its or his right to carry on any trade, business or profession for which a specific license, registration or other authorisation is required by law in any jurisdiction.

9 C) be the subject of a prohibition order or any order made by the Monetary Authority of SINGAPORE or have been prohibited from operating in any jurisdiction by any financial services regulatory authority; d) have been or be involved with a corporation which has been censured, disciplined, suspended or refused membership or registration by MAS, any regulatory authority of any business or profession; an operator of a market or clearing facility, any professional body or government agency, whether in SINGAPORE or elsewhere; or e) have had any judgment (including the finding of fraud, misrepresentation or dishonesty) given against him/it in any civil proceedings in SINGAPORE or elsewhere, or be a party to any pending proceedings that may lead to such a judgment.

10 APPENDIX A - FIT AND proper criteria Page 7 of 9 f) have accepted civil liability for fraud or misrepresentation under any law in any jurisdiction; g) have had any civil penalty enforcement action taken against it or him by MAS or any other regulatory authority under any law in any jurisdiction; h) have contravened or abetted another person in breach of any laws or regulations, business rules or codes of conduct, whether in SINGAPORE or elsewhere, and; i) have been the subject of any investigations or disciplinary proceedings or been issued a warning or reprimand by MAS, any other regulatory authority, an operator of a market or clearing facility, any professional body or government agency, whether in SINGAPORE or elsewhere; j) have been refused a fidelity or surety bond, whether in SINGAPORE or elsewhere; k) have demonstrated an unwillingness to comply with any regulatory requirement or to uphold any professional and ethical standards, whether in SINGAPORE or elsewhere.